The Presence Of Absence – East Midlands Attendance Management Summit 2008

2. The Presence Of Absence – East Midlands Attendance Management Summit 2008 Paul Southby, Regional Director, CBI East Midlands

3. About the CBI • Lobbying on behalf of UK business • Work with government and others to help UK business compete more effectively • Aim to help create and sustain conditions in which UK business can prosper for the benefit of all • UK’s official business representative in the EU • National international and regional offices

4. Who does the CBI represent? • Mainly represent private sector business • 80 of the FTSE 100 in membership • Speak for 240,000 businesses nationally, some via trade associations • Regional representative of large business in the East Midlands in new Regional Economic Cabinet chaired by regional minister

5. CBI/AXA Absence And Labour Turnover Survey 2008 • 2008 is 21st year of publication • Definitive source of long-term trend data on the extent costs causes and solutions to workplace absence • Based on representative sample covering all industry sectors (70% private/30% public) save agriculture • All sizes of organisation represented, and all UK regions

6. Extent of absence • Absence stands at an average of 6.7 days per employee • 9.3 days difference between best and worst performers • Absence is higher among manual employees • Smaller organisations fare better than large ones • Absence rates are significantly higher in the public sector

7. Regional variations in absence • In the East Midlands the average days lost is 6.6 – slightly lower than average • Absence levels are lowest in the South (5.6), Northern Ireland (5.7) and Greater London (5.9) • Absence levels are highest in Yorkshire and Humberside (8.9), the North West (8.9) Wales (7.6) the West Midlands (7.5) and the South East (7.4)

8. Why have absence rates declined? • Good management policies and closer monitoring • Changes in workforce culture • Also, external factors such as medical advances and healthier lifestyles • Surprisingly few believe improvements in the NHS have helped – only 8% identified them as a key factor

9. Costs of absence • Direct cost of absence is £517 per employee – 3.1% of payroll/£13.2bn to the UK economy • Indirect costs add a further £263 per employee • Larger employers report higher absence costs • Absence costs vary considerably by sector • Cost of absence higher in the public sector - £692 per employee -v- £459 in private sector

10. Causes of absence • Mainly illness but also home and family responsibilities and medical appointments • Long term absence accounted for 40% of working time lost • Minor illness caused most short term absence • Non-work related stress anxiety and depression is the most common cause of long term absence for non-manual workers, for manual workers back pain

11. However ... • Employers estimate that 12% of sickness absence is not genuine ... • ... and 65% believe some absence is an unauthorised extension of weekends and 60% believe of holidays ... • ... and more than half had to discipline, and more than a third to dismiss someone for persistent absence

12. Attendance management policies • Management action typically triggered by three spells or ten days of absence • Most employers operate rehabilitation policies • Employers take stress seriously • Government could do more (e.g. capability-focused medical certificates) to help employers address sickness absence

13. Employee health and well-being • More than two thirds of employers have a well-being policy • Employers believe well-being policies can improve staff morale and cut absence • Praise for a job well done is felt to be the most important contributor to staff morale • Most organisations are satisfied with levels of morale

14. Labour turnover • Labour turnover increased slightly to 14.9% over the survey year • Some regional companies have reported a dramatic reduction in turnover in the last 6 months • Turnover varies by sector, and by region (East Midlands is about average) • Job security – constant for the survey, but regional companies report a recent reduction (for obvious reasons)